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Should you have multiple savings accounts? What to do instead

What we'll cover

  • How many savings accounts you can open

  • How to use an Ally Bank Savings Account for multiple goals

  • The drawbacks of multiple savings accounts

Many individuals find managing their finances challenging when striving to save, prompting them to utilize multiple accounts as a strategy for better financial management and to achieve their financial goals.

But spreading out your money across accounts might not be the best approach for you.

At the same time, having a single savings account also can pose challenges. When all your money is kept as one lump sum, it can be difficult to keep track of your specific goals and the progress you've made. That's where Ally Bank's Savings Account comes in — with savings buckets, you can forego the need for multiple accounts and instead, organize your funds all in one place.

An alternative to multiple savings accounts

No matter how many goals you have, Ally Bank Savings Account  buckets allow you up to 30 designated categories. By consolidating your savings into a single account, you can streamline your banking experience, and simplify record-keeping, all while enjoying the same benefits as having multiple accounts. Instead of having multiple savings accounts, here's how Ally Bank's Savings Buckets can meet those needs:

  • Goal-specific savings: Assign specific goals to different buckets (such as vacation or a future down payment ). This separation helps keep you from accidentally dipping into funds earmarked for a particular purpose, while still keeping everything in one place to help protect you from overdraft.

  • Budget management: Multiple buckets can serve as a budgeting  tool—you can keep an eye on the bigger picture, while still viewing your funds broken out by goal or category.

  • Emergency fund protection: Maintaining a separate bucket for your emergency fund  reduces the temptation to use those funds for non-emergencies.

  • Tailored savings strategies: Not all savings goals are created equal. Some may require regular contributions, while others might involve lump sum deposits. You can set your buckets up exactly as you like in your Ally Bank Savings Account .

  • FDIC coverage: Ally Bank is insured by the Federal Deposit Insurance Corporation (FDIC), so your money is protected up to the maximum allowed by law.

Savings buckets offer a simplified method for organizing your finances. Managing numerous accounts can become overwhelming and confusing, potentially resulting in complexities in tracking your financial goals. The more accounts you have, the higher the likelihood of forgetting about some of them, which can result in dormant accounts and a loss of potential interest earnings over time.

How to manage multiple goals in one account

Ally Back's savings buckets are a simple solution that addresses the concerns associated with multiple savings accounts. While saving for various goals demands flexibility and accuracy, buckets combines the simplicity of centralizing your savings in a single account with the precision of categorizing your financial goals separately. With this feature, you can seamlessly achieve all the benefits of goal-specific savings, enhanced budgeting and tailored strategies within one convenient account. Whether you're planning a  vacation , safeguarding your  emergency fund  or cultivating a  down payment  on a new home, our savings buckets provide you with unparalleled organization and financial control.

When it comes to smart saving, there's no one-size-fits-all solution — and the best option is the one that works best for you.

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